If you default on your home equity loan, the second lien holder can foreclose on its own, pay off the primary mortgage with the proceeds from selling the home and use what's left to pay itself. You are also much more likely to be approved if you provide a sizeable down payment. What is Mortgage Fraud? If you are able to do reasonable repairs that enhance the value of the home, you will be paying yourself back in large part when you sell your home. Requires less cash upfront for your down payment and closing costs. Ask about alternative equity loans that require less income documentation. But you may be uncertain about what they involve and how to navigate the potential benefits and risks.
Reader-friendly guide to home equity loans
Because you’re securing the loan with a large asset (your home), people with poor or bad credit can qualify for a home equity loan or line of credit. Whether you’re looking for a HEL or HELOC, lenders may have a set of criteria you’ll need to meet to qualify. People with bad credit may have a hard time qualifying for a home-equity loan because most lenders require at least credit score. You may have an easier time qualifying for a home equity loan with your credit union vs online lenders. Bad credit or no credit makes it tough – but not impossible – to get a loan. Credit unions, home equity and peer-to-peer loans or even debt consolidation with no loan could improve your credit rating and increase your future options.
What is a HELOC?
There are a few that appear to be mildly effective. This includes Caffeine, Green Tea and Glucomannan (a fiber that can reduce appetite). However, the results are usually weak and inconsistent and certainly nothing to get excited about.